By Melodie Warner
Exxon Mobil Corp.'s (XOM) first-quarter earnings rose 0.5% on
higher margins, though both its upstream and downstream operations
posted lower profits and revenue fell short of Wall Street
estimates.
The world's largest publicly traded oil company has seen
declining production levels of late as massive supplies of shale
oil and gas unleashed in North America by hydraulic fracturing
change the energy industry's traditional trade flows and investment
patterns. But at the same time, the abundance of cheap oil and gas
in North America has allowed Exxon's downstream operations to post
improved profits.
Exxon has sought to boost its reserves and production by buying
assets in the prolific Bakken shale in North Dakota from Denbury
Resources Inc. (DNR) and forming joint ventures with heavyweights
like OAO Rosneft (ROSN.RS) to tap Arctic resources. Last month,
Exxon said it plans to increase its annual spending on energy
projects by $1 billion, bringing its capital spending levels to
about $190 billion over the next five years, or $38 billion per
year, a new record for the oil giant.
Exxon reported a profit of $9.5 billion, or $2.12 a share, up
from $9.45 billion, or $2 a share, a year earlier. Revenue dropped
12% to $108.81 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of $2.05 a share on revenue of $119.83 billion.
Operating margin edged up to 14.7% from 14.1%.
Exploration and production earnings declined 9.8% to $7.04
billion as production fell 3.5% on an oil-equivalent basis.
Refining and marketing earnings fell 2.6% to $1.55 billion while
refining-driven margins increased earnings by $780 million.
Shares were recently trading 47 cents higher at $89.90
premarket. The stock is up 3% over the past year through
Wednesday's close.
Write to Melodie Warner at melodie.warner@dowjones.com
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